Trust Company of America
| Company type | Trust company |
|---|---|
| Industry | Financial services |
| Founded | May 23, 1899 in Albany, New York, United States |
| Founder | Ashbel P. Fitch |
| Fate | Merged into Equitable Trust Company in 1912 |
| Headquarters | New York City , United States |
Key people | Ashbel P. Fitch (founder and first president), Oakleigh Thorne (president from 1907) |
| Products | Trust and banking services |
The Trust Company of America stood as a prominent financial institution with its headquarters located in New York City. Established on May 23, 1899, in Albany, New York, the company's founder and inaugural president was Ashbel P. Fitch. Initially situated in the Singer Building within Manhattan's Financial District, the firm grew through calculated acquisitions, notably incorporating the Colonial Trust Company, a commercial bank, in 1907.
Amid the Panic of 1907, starting October 23, 1907, the company encountered a severe bank run but managed to sustain stability thanks to vital assistance from financier J. Pierpont Morgan as well as capital support from the Bank of England and investors across Europe. This episode underscored the Trust Company of America's significance in the financial sector and demonstrated its ability to withstand economic turmoil.
The organization was formed through the unification of several entities: North American Trust Company, the former Trust Company of America, City Trust Company, and Colonial Trust Company. Its corporate framework and operational strategy established it as an influential institution within early 20th-century American finance.
In the spring of 1912, the Trust Company of America was merged into the Equitable Trust Company, a pivotal consolidation that altered its market position and furthered ongoing industry amalgamations.
1899-1903: Formation
Operations under the Trust Company of America commenced in 1895 through the consolidation of North American Trust Company, the former Trust Company of America, City Trust Company, and Colonial Trust Company. Officially incorporated on May 23, 1899, in Albany, New York, its formation was driven by Edward F. Cragin, James M. Donald of Hanover National Bank, and Alvah Trowbridge from the National Bank of North America. Ashbel P. Fitch was appointed as the first president. The enterprise launched with $2.5 million in capital stock alongside an equivalent paid-up surplus, positioning itself as a trust company serving other trust companies by functioning as a clearinghouse. Its initial base was located in the Singer Building at Liberty Street and Broadway in Lower Manhattan’s Financial District.
1904-1905: Merger
Under Oakleigh Thorne’s guidance in 1904, North American Trust Company was consolidated into the Trust Company of America. On April 12, 1905, a significant merger was declared involving City Trust, North American Trust, and the Trust Company of America. The resulting institution retained the name Trust Company of America and featured $2 million in capital, $9 million surplus, and deposits surpassing $50 million—positioning it among New York’s most robust trust companies. Thorne managed this consolidation by employing an innovative structure: establishing Broadway Securities Company to secure majority stock control despite minority shareholder resistance. Shares from all three entities were entrusted to a committee comprising Charles T. Barney, George R. Sheldon, Hosmer B. Parsons, Emerson McMillin, Thorne himself, and William H. Leupp. A shareholder meeting to approve the merger was scheduled for April 18, 1905.
1907: Colonial merger
The firm's second branch was situated on the ground level of 37 Wall Street, a 25-story structure designed by Francis Kimball and finished in 1907 for The Trust Company of America.
On January 11, 1907, plans were revealed for the Trust Company of America to merge with and absorb the Colonial Trust Company. By January 16, meetings had confirmed the consolidation, appointing Oakleigh Thorne as president and John E. Borne as chairman. The former Colonial Trust offices continued operating as a branch within the St. Paul Building. By October 1907, Colonial Trust had been fully integrated as a branch of the Trust Company of America.
Panic of 1907
During the financial crisis of October 1907, lending activities halted and broker interest rates surged to 70%, triggering a steep decline in stock values. Several major trusts, including the Trust Company of America, experienced significant deposit withdrawals.
On October 22, Oakleigh Thorne, president of the Trust Company, requested aid from J.P. Morgan, who gathered prominent banking figures and U.S. Treasury Secretary George B. Cortelyou. Although Thorne emphasized the institution's strong financial footing with $4 million in assets exceeding liabilities, public trust diminished due to negative media coverage.
An audit conducted under Morgan's direction verified the bank's sound condition. Morgan declared the Trust Company of America as "the place to stop the trouble" and arranged loans totaling $8.25 million from other trust companies to bolster liquidity. Despite continued deposit runs over several days, the company remained stable without changes in leadership.
By November 6, 1907, after distributing $34 million during the turmoil, Thorne affirmed that the firm was "absolutely sound" with sufficient cash reserves, highlighting its endurance through one of the period’s most intense financial upheavals.
1908-1912: Post-panic period and merger
As of December 1911, the trust reported total assets amounting to $34.2 million and owned a prominent skyscraper at 37 to 43 Wall Street featuring large, well-appointed banking halls.
On January 17, 1912, Alvin Krech, president of the Equitable Trust Company, proposed acquiring the Trust Company of America at $375 per share. The merger received approval from Oakleigh Thorne, president of the Trust Company of America, with plans to retire that brand and consolidate under Equitable Trust. Following this consolidation, Equitable would oversee deposits near $70 million; at that time, Trust Company of America held $2 million in capital, $6 million in surplus funds, and $27 million in deposits. Thorne maintained his role as president until the spring 1912 merger completion. Shareholders ratified the agreement in early February 1912, with finalization occurring shortly thereafter.
Post-merger developments and legacy
After Equitable’s skyscraper was destroyed, operations were moved into the banking rooms previously owned by the Trust Company of America on 37 Wall Street’s ground floor; eventually, Equitable acquired ownership of the entire building. Subsequently, Equitable merged with Chase Manhattan Bank, strengthening its market position.
By January 1941, Arthur S. Kleeman served as president of the Colonial Trust Company, which continued functioning as a commercial bank based in New York. The entity remained active at least until August 1955 when James C. Olson was appointed as a new director.
Directors
The board formed on May 22, 1899, comprised distinguished business figures including Ashbel P. Fitch, William Barbour, Henry O. Havemeyer, Myron T. Herrick, Emerson McMillin, E. C. Converse, George Blumenthal, and Philip Lehman. Additionally, George Crocker held a director position until his passing in 1909.
By the beginning of 1912, the board featured key executives such as Ashbel P. Fitch, Oakleigh Thorne, H. B. Hollins, William F. Sheehan, and W. K. Vanderbilt Jr., representing a leadership group pivotal in steering the company's expansion and market presence.